Mister Car Wash (MCW) Q2 2024 earnings summary

Executive summary

• Q2 2024 net revenues rose 8% to $255 million, driven by UWC member growth, new locations, and record highs for both revenue and adjusted EBITDA.

• Adjusted EBITDA increased 20% to $88.7 million (34.8% margin), with comparable store sales up 2.4% and UWC members up 3% year-over-year to 2.13 million.

• Net income for Q2 was $22.1 million (8.7% margin), while adjusted net income was $36.8 million ($0.11 per diluted share).

• Nine new greenfield locations opened in Q2, bringing the total to 491 across 21 states, with greenfield pipeline solid but some delays expected.

• Retail traffic remains soft, but average ticket increased 5.2% to $14.88, and Titanium membership adoption reached 20% of the member base, driving higher revenue per member.

Financial highlights

• Q2 2024 net revenues: $255 million (+8% year-over-year); adjusted EBITDA: $88.7 million (34.8% margin); comparable store sales up 2.4%.

• Q2 net income: $22.1 million (8.7% margin); adjusted net income: $36.8 million ($0.11 per diluted share).

• UWC sales comprised 72% of total wash sales; UWC members grew 3% year-over-year to 2.13 million.

• Cash and cash equivalents stood at $3.6 million as of June 30, 2024; long-term debt was $919 million to $933 million.

• Total costs and expenses were $200 million, including $7 million in stock-based compensation and $3 million in asset disposition losses.

Outlook and guidance

• Fiscal 2024 net revenues expected between $988 million and $1.016 billion, with full-year revenue likely at the low end due to delayed store openings and hurricane impact.

• Comparable store sales growth forecasted at 0.5%-2.5% for the year.

• Adjusted EBITDA anticipated at the high end of $291.5-$308 million, with margins expected to moderate to the low 30% range in the second half.

• 40 new greenfield locations targeted for 2024; capital expenditures forecasted at $364 million to $405 million.

• Liquidity and capital resources expected to be sufficient for at least the next 12 months.